The long-awaited sale of Mercy Iowa City hospital is now over after Iowa City-based University of Iowa Health was approved Nov. 6 to buy the bankrupt facility, per Becker’s
The original winning bidder, bondholder Preston Hollow Community Capital, found itself in dispute about how to fund operating losses at Mercy Iowa City and the sale was then subjected to a rebidding process Oct. 27.
The University of Iowa Health system, which had placed an original bid for Mercy Iowa City, was deemed to have won the rebidding process, but the sale had to be approved in bankruptcy court.
“From the beginning, both our institutions have focused on bringing accessible health care to Iowans, regardless of their ability to pay,” a joint statement reads. “It is that same spirit of steadfast commitment to service that will be vital as we join our two organizations.”
Current Mercy Iowa City employees will be offered jobs with University of Iowa Health with the expected integration of the hospital into the larger system in early 2024.
